Australian (ASX) Stock Market Forum

BBUS - BetaShares U.S. Equities Strong Bear Hedge Fund

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The problem with this "thing" is that you have to get the exit right, as well as the entry. I think I owed it a few years ago, saw the price rise one day, with a gap down a couple of days later when the overnight futures decided to jump. I was too late to get out.

In my opinion, going short one, or more, futures contracts would be a better hedge against a long term investment portfolio.

KH
 

Sean K

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The problem with this "thing" is that you have to get the exit right, as well as the entry. I think I owed it a few years ago, saw the price rise one day, with a gap down a couple of days later when the overnight futures decided to jump. I was too late to get out.

In my opinion, going short one, or more, futures contracts would be a better hedge against a long term investment portfolio.

KH

I've noticed a lot of gap downs in this, but perhaps it'll be gapping up soon? 25 Mar last year it went from $60 to $50 overnight... eeeek
 

Sean K

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Interesting action today and the volume over the past few months. Not sure how to read it just yet, but tempted to call 8.35-40 a bottom for the short term. Very long term this thing is obviously going to keep going down, but experimenting with this as a short term hedge at the moment.

Screen Shot 2021-12-20 at 4.00.58 pm.png


Screen Shot 2021-12-20 at 4.05.19 pm.png
 
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Signs of a Top

This 100 year SPX chart - overbought on a monthly chart (That's the RSI in red ). Rare.

View attachment 129395

And this chart - The S&P 500 has blown the top off its post-GFC 10 year trading range. And it's overbought on the weekly chart.

View attachment 129396

Enjoying your work Finicky. I've included this one in my selections in the ASF 2022 Tipping Comp.
 
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there is an article out there somewhere that explains why BBUS and BBOZ continually leak money because they use short-term derivatives to accomplish the aim , a faster version of an ETF using oil or gold future contracts , if you like

i still hold some BBUS ( deeply underwater ) but have used BBOZ and BBUS in the past with some success

now i won't go so far as to call them rubbish , but they have a specific goal , and use a high risk method to achieve that aim , and you should understand this needs strong nerves and quick reflexes on the sell trigger , BBUS and BBOZ might be useful as a hedging ( insuring against a market plunge ) i tried them as a liquidity buffer when i suspect a market downturn ( an easily sold asset that puts credit directly in the trading platform , when the market is tumbling ) as a second option to relying on a speedy transfer of cash from the cash reserve account ( which dives a small amount of interest every month ) there is always a tiny chance of banks freezing the accounts in the event of bank runs

please take extreme care , there is an ocean of debt out there , and i am currently not buying any of it
 
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Thanks for the info.
I use bbus: but you can not keep these etf to hold for a while. In / out
u are referring to BBUS, but what about BEAR, does it also manufacture more units when it gets to a low value? (glad i read your posts here ) and when do they change the number of units?
 
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u are referring to BBUS, but what about BEAR, does it also manufacture more units when it gets to a low value? (glad i read your posts here ) and when do they change the number of units?
Not sure..i use bboz and bbus for the extra leverage added.but interesting question indeed
Anyone?
 
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according to Commsec , BEAR has a 75% lending value ( LVR )

CODECOMPANYASSET
AAABetaShares Aus High Interest Cash ETF58.19%
--Spi 200 Futures Mar220.00%

BBUS and BBOZ do not have a lending value

so SEEM to consist of cash and/or a selected market derivative .. possibly cashed out daily

my GUESS is BEAR is a lot less eager to add units as it would require generating more AAA units to be held as collateral ( but would probably add when really needed )
 
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according to Commsec , BEAR has a 75% lending value ( LVR )

CODECOMPANYASSET
AAABetaShares Aus High Interest Cash ETF58.19%
--Spi 200 Futures Mar220.00%

BBUS and BBOZ do not have a lending value

so SEEM to consist of cash and/or a selected market derivative .. possibly cashed out daily

my GUESS is BEAR is a lot less eager to add units as it would require generating more AAA units to be held as collateral ( but would probably add when really needed )
Not sure..i use bboz and bbus for the extra leverage added.but interesting question indeed
Anyone?
I actually was supposed to say BBOZ rather than BEAR. It probably also adds units when it needs to
 
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fairly easy to do if you are throwing cash at derivatives ( and cashing them out a short period of time later ) for either BBOZ or BBUS

i am sure there are some regulations involved , but some PM ETFs are only futures contracts as well so must all be legal
 
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People talk about the fees eroding profits. Can anyone give an idea of how much of an impact this has? It would be good to get a quantifiable understanding of this.
 
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